Micron's $41.5 Billion Q3 Spurs Lam as AI Memory Shortage Drives Capex Higher
Updated
Updated · The Motley Fool · Jul 2
Micron's $41.5 Billion Q3 Spurs Lam as AI Memory Shortage Drives Capex Higher
3 articles · Updated · The Motley Fool · Jul 2
Summary
Micron's June 24 results sent its shares up nearly 16% and lifted Lam Research more than 7%, after the memory maker posted fiscal Q3 revenue of $41.5 billion, up 346%.
AI demand for DRAM and NAND from data centers, PCs, smartphones, vehicles and robots continues to outstrip supply, with Micron saying tight conditions should persist beyond 2027.
That shortage is pushing Micron's fiscal 2026 capital spending to $27 billion—nearly double fiscal 2025—with quarterly capex set to reach $10 billion in Q4, implying fiscal 2027 spending above $40 billion.
Lam gets 39% of revenue from memory equipment, positioning it to benefit as Micron, SK Hynix and Samsung expand capacity; Lam has already grown revenue 24.4% in the first nine months of fiscal 2026.
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Micron’s Q2 2026 Earnings Shatter Records as AI Memory Demand Sparks Industry Transformation
Overview
Micron Technology delivered record-breaking results in Q2 2026, reporting $23.86 billion in revenue and strong profitability, including $13.79 billion in GAAP net income and $12.07 EPS. This performance highlights Micron’s operational efficiency and its ability to capitalize on the surging demand for memory solutions driven by the AI boom. The company’s robust financials, including high free cash flow and significant cash reserves, position it as a key player in the AI infrastructure race. Micron’s strategic focus on advanced memory, especially High-Bandwidth Memory, underscores its pivotal role in supporting the rapid growth of AI applications.